TRANSFORM YOUR BUSINESS
1: Mastering Information Flow
Change is neither an option nor easy. An organisation that attempts to ignore change is doomed to
fail; an organisation that tackles change without the right approach risks failure. That’s a
tough choice.
Perhaps the biggest external driver for change is information. Information forms the sensory
system of a business – there’s never been more of it and improving its use disrupts entire
industries. Think Uber – the biggest transportation company in the world; that doesn’t own its
vehicles or employ any drivers. Uber’s disruption is in mastering how information flows between
customer and driver. In those terms, it becomes easy to see how Amazon, Salesforce and Xero
have all disrupted their industries – by mastering information flow.
Whether you’re setting out to be the next great disruptor, defending your business from that
disruption, or merely wanting to improve the bottom line in your organisation, mastering information
flow is a great way to get change right.
Information has always fuelled decision processes in organisations. What’s changed is that familiar
paper-based, manual handling of information has been subsumed into Information Technology
(IT). The technology of information has come to dominate the information itself to the point where
many organisations have lost sight of the purpose of the technology – which is to master the flow
of information by making it as effective and efficient as possible.
When we strip away the complexity of the technology and focus on how information flows within an
organisation, clarity emerges from confusion. As much as anything, this is a shift in mindset which
creates new change insights and the foresight to tackle transformation with confidence.
One of the major barriers to transformation is communication. Any
change process must battle the law of diffusion of innovation – the
classic bell curve:
Early
Majority
Late
Majority
Early
Adopters
Laggards
Innovators
Only communication can enable innovators to persuade early adopters, early
adopters to persuade early majority… and so on. Communication is particularly
challenging for information-driven change because the technology is an obstacle to
effective communication.
In the absence of effective communication:
As Chief Executives struggle to execute transformational strategies.
Boards are unable to assess or mitigate technology-
related risk.
Chief Financial Officers are unable to contribute to technology investment cases.
In each case, the corporate leadership are forced into a position
of being reluctant followers of IT-driven change rather than the
drivers of business transformation. Change becomes a slave
of the technology rather than technology being the servant of
transformation.
Having previously been strategic consultants, the LINQ® founders
had observed four symptoms that caused particular damage in a
wide range of organisations:
CURRENT STATE
BLINDNESS
CURRENT STATE
BLINDNESS
?!
DECISION
PARALYSIS
?!
Few organisations maintain an understanding of the current state of
their information ecosystem and even if they do, it is an
IT-centric view.
POOR
DECISION
PROJECT
PRIORITISATION
The
result :
DISASTER
PARALYSIS
No prospect of continuous improvement.
The immediate consequence :
Damaging realities hidden from Board and Executive view.
The long-term effect :
Ever-increasing competitive threat as the technology gap widens.
A non-technical executive has to make a go / no-go decision about
a technology project. The language used to describe the decision
parameters is highly technical and therefore impenetrable. The
POOR
decision
is deferred, often withPROJECT
a request for more analysis.
PRIORITISATION
DISASTER
The result :
An expensive delay.
The immediate consequence :
Frustration on all sides.
The long-term effect :
Endless and expensive analysis with no results.
?!
DECISION
PARALYSIS
POOR
PRIORITISATION
There are always more IT projects than money. For non-technical
executives, prioritisation is all too often based on presentation
eloquence than factual analysis.
PROJECT
TheDISASTER
result :
Subjective decisions.
The immediate consequence :
Spending on technology, not business.
The long-term effect :
Inability to transform the business.
POOR
PRIORITISATION
PROJECT
DISASTER
One of the consequences of the endless analysis from the first
symptom is that projects are forced to be big to justify the endless
analysis. Big projects are risky. The majority of the risks are highly
technical in nature and extremely challenging for non-technical
executives to control.
The result :
Project disaster.
The immediate consequences :
Wasted time and money. Lost opportunity.
The long-term effect :
Change aversion and more decision paralysis.
These symptoms all have a common cause:
The communication gap between those with specialist knowledge and non-specialist executives.
Even an executive who attempts to stay current is faced with constantly changing specialist
descriptions with perplexing depth.
These challenges resonate with organisations of all kinds and
there is genuine excitement from Early Adopters as they use LINQ
to improve the communication between IT specialists and nontechnical executives. The non-technical executives recognise that
they can then lead transformation change rather than being the
reluctant followers of technology-driven change; the IT specialists
see a way of alleviating their frustration about the unrealised
potential of IT.
2: LINQ - Seeing Information in a New Way
LINQ enables an organisation to see how information flows through an organisation today
and offers insights into how those flows could be improved – using a visual approach which is
accessible to all.
In LINQ, systems and people are shown as enablers of these information flows which removes
both complexity and emotion from change discussions. A non-specialist executive can lead
improvement initiatives by those with specialist skills to describe their technical proposals in terms
of improved information flows.
LINQ provides organisations with a persistent and authoritative view
of the current state of their information ecosystem that is readily
understood by Board members and executives. This is significant
for the same reasons that transparency of manufacturing processes
led to the revolution of the Toyota Production System; transparency
leads to transformational enablement from executive to
knowledge worker.
What has proven interesting is just how quickly audiences grasp
the implications of LINQ: Boards can understand and mitigate
risks; Executives understand and can act upon transformational
opportunities.
IT specialists are also enthusiastic about LINQ. Far from
threatening their expertise, Enterprise Architects and other senior
technical roles are embracing LINQ as a ‘Babel Fish’ that allows
them to communicate more effectively to non-technical executives
and ensure that the resulting work puts technology to work on behalf
of the business.
Summarising the Value Proposition
Persistent and Authoritative Current State :
The current state of the Information ecosystem is immediately
visible. Problems and opportunities for improvement can be acted
upon immediately
Decision Enablement :
Non-technical decision makers are presented with options with
objective risk and opportunity measures. Decisions can be made
quickly and in the best interests of the business.
Objective Prioritisation :
The value and cost benefit of improvements are immediately
visible. Beyond that, it becomes possible to see the transformation
opportunity of IT, even for non-technical executives
Project Control :
A consequence of all of the above is that projects become smaller,
more clearly defined and understood by the governance entities.
Project scope is easily managed and decisions based on objective
evidence. Project success rates increase.
2.1: The Business Benefits of LINQ
2.1.1: Board of Directors
LINQ enables Board members to identify, measure and mitigate
the risks that are present in their information ecosystems. They are
also better able to judge the objective merits of investment cases
to make the necessary improvements. Perhaps most significantly,
LINQ allows Board members to understand the transformational
potential of digital investment.
A key advantage of LINQ is the improved communication of change
initiatives between the Executive and the Board. The opportunities
to improve shareholder value through digital transformation and
the competitive risks of not investing can be discussed against the
objective backdrop of LINQ.
2.1.2: Executives
LINQ enables executive teams to
have a new framework for exerting
leadership over digital initiatives
Continuous Improvement :
LINQ provides a constant visibility into the organisation’s information
ecosystem. This is an essential precursor to initiating a continuous
improvement strategy for digitisation.
Objective basis for IT Decision Making :
LINQ provides executives with a non-technical framework which
maintains a constant visibility of cost and value across the
information ecosystem. Any changes can be objectively measured
in terms of business value set against cost savings.
Objective Prioritisation of IT Spend :
Any proposed changes can be readily prioritised since LINQ makes
the value / cost / improvement transparent to all. The prioritisation
is based on an objective measure, ensuring that discussions can be
grounded in reality and focused on business outcomes.
Better, Smarter IT Projects :
The use of LINQ tends to encourage smaller IT projects because
the benefits of small units of change become much easier to define
and understand.
Each of these business benefits is significant in its own right.
Together they represent significant enablers for digital
transformation. In this respect, LINQ is to transformational change
today as the Toyota Production System was to manufacturing in the
1980s and Critical Path Programming was to project management
in the 1960s.
2.1.3: IT Specialists
It is in an IT specialist’s interest to have non-technical executives
better understand their work; it enables a correct prioritisation
of spending on technology. LINQ enables this by presenting
dashboards which allow IT specialists to present value-based needs.
Using LINQ, IT specialists are able to explain the inefficiencies and
risks of the current state, get these fixed quickly and then move on
to present the transformational opportunities of digitisation to the
Executive team.
2.1.4: Strategic Consultants
Strategic consultants are paid to effect change in organisations.
Good strategic consultants create positive change; Great strategic
consultants create transformational business change. LINQ Ltd was
founded by four consultants who had become frustrated that the
difference between good and great was often based on the client’s
ability to understand how digitisation would create change.
When LINQ is presented to strategic consultants, there is an immediate
‘leaning in’ to the conversation which rapidly iterates with ‘…and’ ideas.
Indeed, the range of great ideas for the use of LINQ often has to be
tempered by the realities of LINQ’s development pace.
Strategic consultants want to use
LINQ as a client engagement tool
through the whole project life cycle
Business Development :
Using LINQ to differentiate their practice to prospective clients
Procurement :
Using LINQ to add value to client proposals
Scoping :
Using LINQ to scope the extent of the project
Current State Analysis :
Using LINQ to capture the client’s current state
Future State Analysis :
Using LINQ to show a client how change will benefit the business
Implementation :
Using LINQ as a project control mechanism
Post-project :
Using LINQ to retain a relationship with the client
This creates value for the practice which is realised at the individual
consultant level through improved client engagement. Strategic
consultants make up the majority of LINQ’s Early Adopters.
3: How LINQ Works
3.1: The LINQ Model
LINQ is b LINQ is based on a very simple concept that can be used to model any scale of
information ecosystem from global to small organisation. The model comprises four node types:
Information; Action (processes); Systems; People
An Information Supply Chain (ISC) is based on the notion that an Action creates Information which
supports an Action… Information… Action and so on. Systems and People nodes are added to
show how they support the Actions and Information. This is shown in Figure 1.
This simple model can be used to quickly and successfully describe
even the most complex Enterprise environment at any level
of digitisation.
Creates
Supports
System
Creates
Used By
Supports
People
Figure 2: LINQ Model
3.1.1: Removing Complexity
and Emotion
A major barrier to communication is the technical complexity coupled
with emotional responses to change. LINQ eliminates this barrier by
showing how information flows from a
Capture Action – Source – Action
– Information – Action – Output –
Business Outcome
as shown in Figure 2 below. Non-technical executives appreciate
the concept of an information supply chain because it clearly
focuses on information flow as a basis for improvement.
m
System
System
People
Outcome
Outcome
Outcome
App
App
System
App
People
People
Action
Action
Action
Info
System
System
People
People
People
Action
Info
System
System
People
People
People
Capture
Info Info
System
App
System
System
Info
System
Capture
Capture
Emotion
Emotion
Emotion
App
OUTPUT
OUTPUT
OUTPUT
Complexity
Complexity
Complexity
SystemsSystems
Systems
Supporting
the
Supporting
the
Supporting
the
Information
Information
Information
Supply Chain
Supply ChainThe
Supply Chain
System
System
The
The
Information
Information Systems Systems
Information
Systems
Supply Chain
Supporting the
Supporting the
Supply ChainSupply Chain
Supporting
the
Information
Information
Information
Focus for Improvement
Supply ChainSupply Chain
Focus for Improvement
Focus for Improvement
Supply Chain
People People
People
Supporting the
Supporting the
SupportingInformation
the
Information
Supply Chain
Information
Supply Chain
Supply Chain
Action
Action
Info
App
System
System
Info
Info
Info
SOURCE
SOURCE
SOURCE
Figure 3: Removing Complexity and Emotion
Systems are abstracted away as an enabler of the information flow;
the value of people is clear as another enabler of information flow.
This approach removes the complexity of a system-centric view and
defuses the emotion that often accompanies change.
“We don’t do things like this round here”
is an emotional response to change based on the perceived threat
of changing roles. LINQ can deflect this response by focusing on the
desired improvements to information flow.
“We’re an [open source / name that vendor] shop”
is another emotional response to change easily deflected by the
LINQ-equipped non-technical executive :
“Okay, but please explain how [insert favoured vendor] will improve
my information flow.”
3.1.2: Simplicity from Complexity
Figure 3 below depicts a typical ISC. This incorporates three
information sources at the bottom with a single decision-support
application (output) at top. The ISC is a typical triangular system
with many sources at the base supporting a single output at
the apex.
Decision Support
Application
Information
Source(s)
Figure 3: Information Supply Chain for a Single Decision
Support Application
By focusing on the flow of information several insights are
immediately obvious. People and systems involved in the ISC can
be identified along with the actions they are performing and the
information they are using and where it comes from.
Figure 4: Overlapping Information Supply Chains
In the example in Figure 4 below, the highlighted nodes support both
outputs – so any improvements in this area will realise benefits in
both outputs. Logically, this area has enhanced value.
3.1.3: Determining value
LINQ allows sophisticated modelling of the value created through
the reuse of information. The start of this process is for the LINQ
user to assign a value to each information output – the point in an
ISC where business value is supported. The value scale ranges
from 0 (no value) to 10 (high value). Although this may seem
arbitrary, it provides a consistent and normalised measure of value
across the organisation and beyond, whatever the focus for value
may be.
LINQ cascades this value ‘upstream’ against the information flow
direction and then sums the values where reuse occurs. This can
be seen in Figure 5 below where the overlap area is scored at a
combined 12 (4 + 8). LINQ groups all nodes of like pedigree so all
nodes within the overlap area have this value of 15. What does
this mean? For the first time, organisations can see how valuable a
piece of information is, based empirically on how much it is used in
the organisation.
App
Outcome
App
People
System
Emotion
4
Action
Info
Systems
8
Supporting the
Information
Supply Chain
System
The
Informati
Supply Ch
Focus for Improv
People
People
Info
People
4
Action
Supporting the
Information
Supply Chain
12
8
System
Info
Capture
Figure 5 : Cascading Values
LINQ automatically groups nodes of like value. These LINQsets
provide a powerful visual cue to show where value is concentrated
in any scale of enterprise. In Figure 5 above, these LINQsets are
shown minimised (for example – ‘Things which Support both’ is a
minimised LINQset containing nodes of value 12).
3.1.4: Determining cost
Over 80% of the costs in a typical Information Ecosystem are
incurred as People perform Actions. LINQ records the frequency and
duration of Actions and the hourly cost of the person performing the
Action and calculates an annual expenditure by multiplying
these variables.
Action
The Action has a duration and frequency Duration; how long the Action takes (D)
Frequency; how many time per year (F)
Annual Cost = R * D * F
The Person is burdened by an hourly
cost rate (R)
Figure 6 : Cost calculation in LINQ
In the example in Figure 6, Simon’s cost is $150 an hour. He
performs an action which takes 2 hours, 220 times a year.
Therefore, LINQ calculates the annual cost as $150 x 2 x 220 =
$66,000. These individual Person – Action costs are aggregated up
to the Value overlap level.
Costs are aggregated within a Value LINQset as illustrated in Figure
7 below. This is a foundation for the cost / value insights
described below.
Total LINQset Cost
$84,400
=
$100 * 1 * 1 * 12 = $1,200 pa
+
$75 * 8 * 1 * 52 = $31,100 pa
+
$25 * 1 * 8 * 260 = $52,000 pa
Figure 7 : Cost Aggregation in a LINQ Set
Customers report that previously they relied on anecdotal evidence
or intuition in such areas. LINQ provides the empirical evidence
many Change Leaders have always desired but struggled to
articulate. When it comes to moderating the budget across the
organisation, this level of insight becomes instrumental in making
the right decisions.
3.2: How to Think Like LINQ;
Shifting the Perspective to Information
LINQ introduces a new methodology for seeing the enterprise in a new way. One of the key
lessons from LINQ Early Adopters is that it can be challenging to ‘think like LINQ’ when building
ISC diagrams, especially when users are familiar with other approaches such as Business Process
Modelling or Data Flow Diagramming.
LINQ’s focus is on how Information gets transformed from the
Capture of an Information Source to an Information Output’s delivery
of business value. LINQ helps retain this focus by allowing a fast
association of Sources to Outputs. This allows a user to quickly
understand the concept of Information Supply Chains.
The biggest challenge emerges as Information Supply Chains are
being densified. Business Analysts who are trained on Business
Process Modelling tend to think in terms of chains of Actions rather
than the flow of Information.
To ‘think like LINQ’, it is useful to
ask these questions:
(2) (2)
From
Perspective:
Fromthe
the ‘Me’
‘Me’ Perspective:
System System
(4)
ME ME
Action
(1) (1)
Action
(4)
1.1.
2.2.
3.3.
4.
4.
(3)
What Action
Action did
What
didI Ido?
do?
What Information
Information did
What
didI create?
I create?
What Information
Information did
to to
perform
What
didI need
I need
perform
the
Action?
the Action?
What System did I need to perform
What System did I need to perform
that Action?
that Action?
(3)
Figure 8 : Thinking Like LINQ as Business Analyst
System
System (4)
People
People (2)
There’s a similar challenge for LINQ users who have a background
in data modelling. They tend to think in terms of individual tables
and records, rather From
than the
in terms
of the flow
of information along an
‘Information’
Perspective:
Information Supply Chain.
1. the
What
Action created
this Information?
From
‘Information’
Perspective:
2.
Who created this Information?
Action (1)
What Action
Information
inputs
they need to
1.3. What
created
thisdid
Information?
create this Information?
2.
Who created this Information?
Action (1)
4.
What System did they need to perform this
3.
What Information inputs did they need to
(4)
4.
(3)
What System did I need to perform
that Action?
(3)
To ‘think like LINQ’, it is useful to
ask these questions:
From the ‘Information’ Perspective:
From the ‘Information’ Perspective:
System System
(4)
(4)
People
People
(2)
(1) (1)
Action
Action
(2)
1.1.
2.2.
3.3.
4.4.
(3)
What
createdthis
thisInformation?
Information?
What Action
Action created
Who
created
this
Information?
Who created this Information?
What
inputs
did
they
need
What Information
Information inputs
did
they
need
to to
create this Information?
create
Information?
What System
System did
to to
perform
thisthis
What
didthey
theyneed
need
perform
Information?
Information?
(3)
Figure 9 : Thinking Like LINQ as a Data Modeller
LINQ also assists users to ‘think like LINQ’ by providing a range
of(1)
starter templates in the LINQ Gallery. These provide typical
Information
Supply Chains for a variety of scenarios which can be
(1)
easily adapted toFrom
a specific
situation.
the ‘Action’
Perspective:
People
System
System (4)
(4)
People (3)
(3)
Each template is
accompanied
by Perspective:
a video
explains
the
From
the
‘Action’
1.
What
Information
didwhich
the Action
create?
thinking
behind
the
Information
Supply
Chain
and
thoughts
about
2.
What
Information
did
the
Action
require?
Action
how it can be adapted
to
a
specific
user’s
situation.
3.
Who
performed
the
Action?
1.
What Information did the Action create?
Action
What Information
System was needed
to Action
perform require?
2.4. What
did the
Over time, it is plannedthis
that
the LINQ Gallery will become a
Action?
3.
Who performed the Action?
framework for sharing best practice and authoritative Information
4.
What System was needed to perform
Supply Chains.
this Action?
(2)
(2)
4: LINQ - Insights that Enable Transformation
Insights emerge as soon as Information Supply Chains are captured. Value and Cost are
quickly and easily captured as described above; the alignment of cost and value become clear.
Inefficiencies are seen clearly and improvements are obvious. These core insights start the
communication process as soon as ISC capture commences
.
LINQ is designed to capture all information flows across an
organisation in a consistent and objective way. This means that
measures of cost and value can be
LINQ has a Dashboard environment to share insights across the
organisation.
4.1: LINQ Balanced Scorecard
The Information – Actions – Systems – People (IASP) analysis offers a powerful way to tackle
improvement. This is brought to life in the LINQ Balanced Scorecard.
A balanced scorecard is a powerful way of prioritizing change by exploring the big picture of value
and cost whilst appreciating the detail which shows the Information – Actions – Systems – People
that will need to participate in the change.
Figure 10 : LINQ Balanced Scorecard
4.2: LINQ People
People play a critical role in an information ecosystem. People performing actions are a major
cost factor and they can also create bottlenecks that impede the flow of information. People are
impacted when change is implemented, often in ways that weren’t fully understood
during planning.
It can be extremely challenging to understand the relationship between people, the systems they
use, the actions they perform and the information they use and create. Using an HR System, a
System Design Tool, a Business Process Modelling tool or a data flow diagram creates highly
technical descriptions which fail to create a holistic picture.
LINQ People allows the role of people to be clearly understood
in the current state and in proposed future states. This is done by
pivoting from the standard flow-centric view to a
person-centric view:
Figure 11 : LINQ People view
In this case, by clicking on ‘Hilary’ in the LINQ canvas, this diagram
is created which shows the Actions that Hilary performs (which
provides insight into her real job description), the Systems that
Hilary uses (which provides insight into her training needs) and the
Business Outputs that Hilary supports. This can be done for the
current state and for a variety of future state options.
5: LINQ - Starting Your Journey
LINQ will help your organisation see the enterprise in a new way. Non-specialist executives will be
able to effectively lead digitisation initiatives and Board members will be able to better appreciate
the balance between risk and reward in change investments. You will quickly see improvements
in efficiency and effectiveness. To start your LINQ journey please visit www.linq.it and send us an
e-mail to [email protected].
© 2016 LINQ Ltd. LINQ is a trademark of LINQ Ltd. All other brands and product names are trademarks of their respective companies. ©2016
LINQ Ltd. LINQ is a registered trademark of LINQ Ltd in New Zealand and the United States of America. All other brands and product names are
trademarks of their respective companies.
LINQ Ltd, PO Box 25602, Wellington 6012, New Zealand